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| The Tax Publishers2019 TaxPub(DT) 1695 (Jp-Trib) : (2019) 199 TTJ 0966 INCOME TAX ACT, 1961
Section 147
Where AO did not carry out further examination and analysis in order to establish nexus between information emanated from investigation wing and formation of belief that income had escaped assessment, then in absence therefor, assumption of jurisdiction under section 147 had no legal basis and resultant reassessment proceedings were set aside. Further, in the light of evidences furnished by assessee which remained undisputed, addition could not be sustained even on merits.
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Reassessment - Reason to believe - Information emanated from investigation wing -
AO received information from investigation wing as to assessee having received accommodation entries in the form of bogus share application money. Accordingly, AO reopened assessment by issuing notice under section 148 and also made addition under section 68.Held: AO did not carry out further examination and analysis in order to establish nexus between information emanated from investigation wing and formation of belief that income had escaped assessment and in absence therefor, assumption of jurisdiction under section 147 had no legal basis and resultant reassessment proceedings were set aside. Further, in the light of evidences furnished by assessee which remained undisputed, addition could not be sustained even on merits.
Relied:Pr. CIT v. RMG Polyvinyl (I) Ltd. (2017) 396 ITR 5 (Del-HC) : 2017 TaxPub(DT) 2034 (Del-HC) and Pr. CIT v. RMG Polyvinyl (I) Ltd. (2017) 396 ITR 5 (Del-HC) : 2017 TaxPub(DT) 2034 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08
IN THE ITAT, JAIPUR BENCH
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